Dimensions
135 x 203 x 18mm
Bestselling author Charles Carlson returns with a deeply researched yet simple strategy for beating the Dow and making money in the stock market. This is a simplified variation of the "Dogs of the Dow" investment strategy. Updated to reflect recent changes in the Dow Jones Industrial Average.
Over the course of his research and writing, Charles Carlson started to notice a surprising yet simple trend in the 30 stocks that comprise the Dow Jones Industrial Average - the stocks that had the worst performance last year were the stocks that had the best performance this year. This startling discovery and subsequent research led Carlson to develop a "worst to first" strategy for outperforming the Dow.
In his new book, 'Winning With The Dow's Losers', Carlson explains how individual investors can use this strategy to beat the market and generate impressive wealth. He has discovered that the Dow stocks display a "reversion to the mean" behaviour that investors can benefit from. This simply means that stock prices cannot exist at extremes forever. A stock that has performed poorly the previous year is ripe for a turnaround and a return to or above its mean price. This theory does not apply to all stocks, but when applied to stocks that comprise the DJIA, this strategy has been proven to work and will provide investors with an excellent contrarian investment strategy.